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![24) n (population growth rate)=2 % . Si depreciation rate)= 10%.; preting (3)= 10%. Production function: (yt = 4.8 ks] In ste](http://img.homeworklib.com/questions/62aec810-2403-11eb-8117-312018d94b6c.png?x-oss-process=image/resize,w_560)
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(24) Consider a closed economy in which the population grows at the rate of 2% per...
3) Consider a closed economy in which the population grows at the rate of 1% per...
3) Consider a closed economy in which the population grows at the rate of 1% per year. The per-worker production function is y = 6k 12, where y is output per worker and k is capital per worker. The depreciation rate of capital is 14% per year. a. Households consume 90% of income and save the remaining 10% of income. There is no government. What are the steady-state values of capital per worker, output per worker, consumption per worker, and...
Consider a closed economy in which the population grows at the rate of 2% per year....
Consider a closed economy in which the population grows at the rate of 2% per year. The per-worker production function is given as where is output per worker and kis capital per worker. The depreciation rate of capital is 18.00% per year Suppose that households consume 75% of income and save the remaining 25%. There is no government (Enter all response is integers or decimals rounded to one place as appropriate. What is the steady-state value of capital per worker?k=
Consider an economy in a steady state with population growth rate η, a rate of capital depreciati...
Consider an economy in a steady state with population growth rate η, a rate of capital depreciation δ , and a rate of technological progress g. a) At the steady state Δk = 0, where k equals capital per effective worker. What condition must be met for this to hold? Describe the condition in words as well as mathematical expressions. b) Describe in words what is maximized at the Golden Rule level of k. c) What mathematical condition must be...
3. A closed economy has a production function: Y-K1 3L2/3, where K denotes machines and L...
3. A closed economy has a production function: Y-K1 3L2/3, where K denotes machines and L denotes workers. The population grows at a rate 2% per year and there is no technological progress. The depreciation rate is 3%. The saving rate, s, depends on the level of capital per worker, k, as follows: 5% if k < 5 (7k-30)% if 5 < k < 10 40% if k > 10 8 There are three steady states with k > 0:...
all but part a 2. (Population growth and technology growth) Consider an economy that is described...
all but part a
2. (Population growth and technology growth) Consider an economy that is described by the production function Y depreciation rate of capital is 6 n 0.05 and the technology growth rate is g = 0.1 K (LE). Moreover the 0.15, the population growth rate is (a) What is the per effective worker production function, that is y ? What is the marginal product of capital, that is ? (b) If the saving rate is s 0.3, find...
Consider an economy such that Output per worker: yt = 2k£.5 Capital per worker: kt Saving...
Consider an economy such that Output per worker: yt = 2k£.5 Capital per worker: kt Saving rate: s = 0.2 Depreciation rate: 8 = 0.15 Workforce growth rate: gN = 0.25 sy-(8+g)k¢ Evolution of capital per worker: kt+1- kt = 1+gN In the steady state, capital per worker does not change over time. Let k* denote the steady state level of capital per worker In the steady state, capital per worker is а) 8 b) 4 c) 2 d) 1...
Consider an economy described by the production function: Y = F(K, L) = (0.25 0.75 a....
Consider an economy described by the production function: Y = F(K, L) = (0.25 0.75 a. What is the per-worker production function? y= b. Assuming no population growth or technological progress, find the steady-state capital stock per worker (k*), output per worker (y*), and consumption per worker (c*) as a function of the saving rate and the depreciation rate. k* = y* =
An economy has the per-worker production Y = 3k^.5 Where y is output per worker and...
An economy has the per-worker production Y = 3k^.5 Where y is output per worker and k is the capital to labor ratio. The depreciation rate is 0.1, and the population growth rate is 0.05 Total saving is S=0.3Y S is total saving and Y is total output a. What are the steady state values of the capital to labor ratio, output per worker, and consumption? b. Repeat part (a) for saving rate of 0.4. c. Repeat part (a) for...
Consider the Solow model with population growth and technological progress. The population grows at rate of...
Consider the Solow model with population growth and technological progress. The population grows at rate of d and the technology grows at rate of g. The depreciation rate of capital is λ. The aggregate production function is given as Y=100 ?![(1-u) ?]" where Y, K, L, ?, ? and u refers to aggregate output, aggregate capital stock, aggregate labor, output elasticity with respect to capital, output elasticity with respect to labor, and natural rate of unemployment, respectively. Draw a well-labeled...
An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E...
An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E is a labor-augmenting technology. Population grows at 2% per year and E grows at 3% per year. The depreciation rate is 5% and the saving rate is 40%. The economy is in steady state. a. What is the growth rate of each of the following: K/EL, Y/EL, EL, Y, Y/L, K/Y, C b. At what rate do wages and the capital rental rate grow?...
3) Consider a closed economy in which the population grows at the rate of 1% per year. The per-worker production function is y = 6k 12, where y is output per worker and k is capital per worker. The depreciation rate of capital is 14% per year. a. Households consume 90% of income and save the remaining 10% of income. There is no government. What are the steady-state values of capital per worker, output per worker, consumption per worker, and...
Consider a closed economy in which the population grows at the rate of 2% per year. The per-worker production function is given as where is output per worker and kis capital per worker. The depreciation rate of capital is 18.00% per year Suppose that households consume 75% of income and save the remaining 25%. There is no government (Enter all response is integers or decimals rounded to one place as appropriate. What is the steady-state value of capital per worker?k=
3. A closed economy has a production function: Y-K1 3L2/3, where K denotes machines and L denotes workers. The population grows at a rate 2% per year and there is no technological progress. The depreciation rate is 3%. The saving rate, s, depends on the level of capital per worker, k, as follows: 5% if k < 5 (7k-30)% if 5 < k < 10 40% if k > 10 8 There are three steady states with k > 0:...
all but part a
2. (Population growth and technology growth) Consider an economy that is described by the production function Y depreciation rate of capital is 6 n 0.05 and the technology growth rate is g = 0.1 K (LE). Moreover the 0.15, the population growth rate is (a) What is the per effective worker production function, that is y ? What is the marginal product of capital, that is ? (b) If the saving rate is s 0.3, find...
Consider an economy such that Output per worker: yt = 2k£.5 Capital per worker: kt Saving rate: s = 0.2 Depreciation rate: 8 = 0.15 Workforce growth rate: gN = 0.25 sy-(8+g)k¢ Evolution of capital per worker: kt+1- kt = 1+gN In the steady state, capital per worker does not change over time. Let k* denote the steady state level of capital per worker In the steady state, capital per worker is а) 8 b) 4 c) 2 d) 1...
Consider an economy described by the production function: Y = F(K, L) = (0.25 0.75 a. What is the per-worker production function? y= b. Assuming no population growth or technological progress, find the steady-state capital stock per worker (k*), output per worker (y*), and consumption per worker (c*) as a function of the saving rate and the depreciation rate. k* = y* =
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